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3 - 2 Identifying Audit Opinions and Circumstances for Departure The following are excerpted sentences and phrases from audit reports issued by independent public accounting
Identifying Audit Opinions and Circumstances for Departure The following are excerpted sentences and phrases from audit reports issued by independent public accounting firms. aScope Paragraph Except as described in the following paragraph Explanatory Paragraph Because of insufficient records we were not able to examine sufficient evidence in support of dividend income received from a shortterm investment, and we were unable to satisfy ourselves as to the dividend income by means of other procedures. Opinion Paragraph In our opinion, except for the effect of the matter described in the preceding paragraph, the financial statements referred to above present fairly bExplanatory Paragraph The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note to the financial statements, under existing circumstances there is substantial doubt as to the ability of the company to continue as a going concern. cExplanatory Paragraph As explained in Note to the financial statements, certain adjustments have been made to the financial statements to conform to generally accepted accounting principles. These adjustments have not been recorded in the books. dExplanatory Paragraph As disclosed in Note to the financial statements, the company has adopted the firstin firstout method of determining inventory costs, whereas it previously used the lastin firstout method. Although use of the firstin firstout method is in conformity with generally accepted accounting principles, in our opinion the company has not provided reasonable justification for seeking a change as required by Opinion of the Accounting Principles Board. Opinion Paragraph In our opinion, except for the change in accounting principles discussed in the preceding paragraph, the financial statements referred to above present fairly Required: For each report, identify the type of opinion for example, "qualified" and the circumstance for departing from the standard wording of an unqualified opinion for example, "departure from GAAP"
Identifying Audit Opinions and Circumstances for Departure
The following are excerpted sentences and phrases from audit reports issued by independent public accounting firms.
aScope Paragraph
Except as described in the following paragraph
Explanatory Paragraph
Because of insufficient records we were not able to examine sufficient evidence in support of dividend income received from a shortterm investment, and we were unable to satisfy ourselves as to the dividend income by means of other procedures.
Opinion Paragraph
In our opinion, except for the effect of the matter described in the preceding paragraph, the financial statements referred to above present fairly
bExplanatory Paragraph
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note to the financial statements, under existing circumstances there is substantial doubt as to the ability of the company to continue as a going concern.
cExplanatory Paragraph
As explained in Note to the financial statements, certain adjustments have been made to the financial statements to conform to generally accepted accounting principles. These adjustments have not been recorded in the books.
dExplanatory Paragraph
As disclosed in Note to the financial statements, the company has adopted the firstin firstout method of determining inventory costs, whereas it previously used the lastin firstout method. Although use of the firstin firstout method is in conformity with generally accepted accounting principles, in our opinion the company has not provided reasonable justification for seeking a change as required by Opinion of the Accounting Principles Board.
Opinion Paragraph
In our opinion, except for the change in accounting principles discussed in the preceding paragraph, the financial statements referred to above present fairly
Required: For each report, identify the type of opinion for example, "qualified" and the circumstance for departing from the standard wording of an unqualified opinion for example, "departure from GAAP"
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